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LatAmOil NEWS IN BRIEF LatAmOil

The Company continues to monitor the
COVID-19 related situation and will only fully
resume regular activities when there are clear
indications that employees are able to return to
work in a safe environment and in accordance
with the advice provided by regulatory authori-
ties in all the countries within which we operate.
Government of Guyana: The Company’s
Board of Directors (the “Board”) congratulates
President Mohamed Irfaan Ali on being elected
the ninth President of the Co-operative Republic
of Guyana. The Board also congratulates Presi-
dent Bharat Jagdeo on his appointment as Vice
President and Brigadier (ret) Mark Phillips on
his appointment as Prime Minister. The Board
reaffirms the Company’s long history of col-
laboration with the Government and People of
Guyana and looks forward to continuing to work
in collaborative partnership with President Ali’s
government.
Q2-2020 financial summary: For the six- barrel. and re-start capital expenditure programmes
month period ended June 30, 2020, the Com- FFO of $38.8mn ($0.28, or CAD0.39 per due to the greater visibility to stronger netbacks.
pany recorded cash on hand as at June 30, 2020 share basic) as compared to $151.0mn ($1.03, However, the Company’s H2-2020 work pro-
of $10,944,682. The Company incurred net or CAD1.38) per share basic) for the prior year gramme is dependent on ensuring the health
exploration and evaluation expenditures of comparative period. Q2-FFO was positively and safety of staff and the communities where
$1,424,408 during the six-month period ended impacted due to a deferred tax recovery, a real- Parex operates.
June 30, 2020 primarily due to costs for mainte- ised foreign exchange gain and an inventory For the remainder of 2020, Parex’s outlook is:
nance of licenses, general exploration, geological reduction. Production: Q3-2020 average approximately
and geophysical consulting, surveys, 3D-seismic Capital expenditures were $5.3mn in the 42,000-44,000 boepd; Q4-2020 range of 44,000-
processing and interpretation, drill planning and period. 48,000 boepd, contingent on safely resuming
well exploration costs. Utilised free funds flow of $33.5mn to pur- development drilling programmes and com-
About CGX Energy: CGX Energy is a Cana- chase 1.075mn of the Company’s common munity access.
dian-based oil and gas exploration company shares for a total cost of $12.6mn (average price Capital Expenditures: Total second half 2020
focused on the exploration of oil in the Guy- of CAD15.30 per share) pursuant to the Compa- capital expenditures are estimated at approxi-
ana-Suriname Basin. ny’s normal course issuer bid programme. mately $65-70mn.
CGX Energy, August 06 2020 Working capital was $339.3mn (CAD3.33 Parex will continue to be responsive to
per share basic)(2) at June 30, 2020, compared changes in commodity prices by managing its
Parex reports on to $330.4mn at March 31, 2020 and $240.1mn production volumes, capital budget and cash
at June 30, 2019. The Company has an undrawn costs, further protecting its balance sheet and
Q2-2020 results syndicated bank credit facility of $200.0mn. shareholder value.
Operational Update: Considering the
No wells were drilled in Colombia compared
Parex Resources, a company focused on Colom- to 11 gross (7.10 net) wells in the comparative COVID-19 pandemic, Parex will continue to
bian oil exploration and production, announces period of 2019 in response to the significant assess and monitor its ability to safely operate a
its unaudited financial and operating results for decline in realised oil prices and the ongoing capital expenditure programme. The Company
the three months ended June 30, 2020. uncertainty in market conditions resulting from is preparing to conduct a diverse capital expend-
Highlights: Quarterly average production the COVID-19 pandemic. iture programme in H2-2020 with key activities
was 40,858 barrels of oil equivalent per day Credit Facility: The Company’s bank syndi- being: LLA-34 and Cabrestero: Completions and
(boepd), consisting of 39,664 barrels per day cated credit facility has been renewed at $200mn, work-overs (4-6 wells) plus development drilling
(bpd) of crude oil and 7,164 cubic feet per day of which Parex is undrawn. (4-6 wells); Capachos: Andina field flowline con-
of conventional natural gas (97% crude oil), a Including the Company’s working capital struction completion; Aguas Blancas: Comple-
decrease of 18% on a per basic share basis over surplus of $339mn, Parex has available liquid- tion of two drilled exploration wells; La Belleza
the prior year comparative period. ity exceeding $500mn and expects to generate (VIM-1 Block): Advance initial works for 2021
Recognised a net income of $19.3mn ($0.14 free funds flow over and above planned capital drilling; Boranda: one appraisal well; Fortuna:
per share basic) compared to a net loss of expenditures in 2020. Drill exploration well.
$3.8mn ($0.03 per share basic) in the previous 2020 Corporate Outlook: Due to the signifi- Share Buy-Back: To date, the Company has
quarter ended March 31, 2020, and net income cant decline in realised oil prices and the ongo- repurchased for cancellation 5.65mn common
of $101.5mn ($0.69 basic per share) in the com- ing uncertainty in market conditions resulting shares, under the normal course issuer bid
parative quarter of 2019. from the COVID-19 pandemic, on April 2, 2020, that commenced on December 23, 2019, at an
Generated an operating netback of $9.95 per Parex announced the withdrawal of its fiscal year average cost of CAD17.85 per share. As of July
barrel of oil equivalent (boe) and funds flow pro- 2020 guidance. 31, 2020, Parex has 138,466,772 basic shares
vided by operations (FFO) netback of $9.96 per As set in the June 24, 2020, press release, Parex outstanding.
boe from an average Brent price of $33.39 per plans to increase production from current levels Parex Resources, August 05 2020

Week 32 13•August•2020 www. NEWSBASE .com P19